Question hanging over Snap Inc.: Will it sputter like Twitter, or soar to new heights as next media giant?

Snap Inc., parent company of Snapchat, begins life as a publicly traded company at a moment when prospects for young social-media startups aren’t looking so bright.

Not only are social media companies unpredictable and prone to rapid rises and falls, but many investors believe the dominance of Facebook Inc. and other giant tech incumbents leaves little room for entry.

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